Tyson j.v. awarded US Navy fuel contract

WASHINGTON – A contract to supply the US Navy with 450,000 gallons of renewable fuels has been awarded to Dynamic Fuels LLC, a joint venture between Tyson Foods Inc. and Syntroleum Corporation. A renewable oil and bioproducts company, Solazyme Inc. will help Dynamic Fuels fulfill the contract, which the Navy and the US Department of Agriculture report is the single-largest purchase of biofuel in government history.

Specifically, this contract involves supplying the Navy with 100,000 gallons of jet fuel (Hydro-treated Renewable JP- 5 or HRJ-5) and 350,000 gallons of marine distillate fuel (Hydro-Treated Renewable F-76 or HRD-76). The fuel will be used as part of the Navy’s efforts to develop a “Green Strike Group” composed of vessels and ships powered by biofuel.

This US Navy contract follows both companies’ involvement in historic commercial airline flights using biofuel, including Dynamic Fuels’ renewable jet fuel work with KLM Royal Dutch Airlines, Finnair, Thomson Airways and Alaska Airlines and Solazyme’s recent flight and partnership with United Airlines, which includes a letter of intent to provide 20 million gallons a year starting in 2014.

Fuel for the US Navy will be manufactured at Dynamic Fuel’s Geismar, La., renewable fuels plant using US-sourced yellow grease (used cooking oil) plus Solazyme’s tailored algal oil as feedstocks. The Navy will receive this fuel in May 2012. In operation for more than a year, the Dynamic Fuels plant is designed to convert non-food feedstocks, such as algal oil, animal fats and greases, into renewable fuels.

“This award clearly demonstrates we’re building momentum for the sale and use of our renewable fuels,” said Jeff Bigger, director of the Dynamic Fuels LLC management committee. “We’ve previously provided the US military with fuel for testing. We believe this contract confirms they recognize the performance and environmental advantages of our fuel since they’re coming back for more and are asking for a much larger volume.”